TRELLEBORG, Sweden (Jan. 3) — Trelleborg A.B. has acquired 100-percent control of rubber compounder Elastomer Compounding S.r.o. and will use the Lesina, Czech Republic-based business to help build its Building Systems business unit in eastern Europe.
Trelleborg paid an undisclosed sum for a 70-percent stake in ECS that was owned by Germany´s Rado Gummi GmbH. Trelleborg had owned 30 percent since 1998.
ECS produces rubber mixtures primarily for profile manufacturers focusing on the construction and industrial sectors. Most of ECS´s production is already delivered to Trelleborg, the firm said. ECS´s annual sales are about $9.5 million, and it employs 40.
"In step with our expansion in eastern Europe, we also need to secure competitive materials support," said Peter Suter, president of Trelleborg Building Systems. "This is a modern facility that strengthens Trelleborg´s competitiveness and provides the conditions for increased growth in both eastern and western Europe."
The mixing unit has a production capacity of approximately 20,000 metric tons, which allows substantial room for growth.
Trelleborg said it expects to realize synergies in the form of shared purchasing and cost-efficient supplies to existing units, primarily in the Trelleborg Building Systems and Trelleborg Automotive business areas. It also supports Trelleborg Automotive´s projected manufacturing plant in Romania, plans for which were recently finalized.